Taxpayers in federally declared disaster areas who received an IRS deadline extension now also get the same extra time to file claims for refunds or credits they are owed. Previously, disaster postponements extended the return-filing deadline but not the separate lookback window used to calculate refund eligibility — meaning some survivors could lose the right to claim money during their recovery. The IRS is also required to factor in any active disaster postponement before sending collection notices, so taxpayers won't receive payment demands on balances whose due date has already been extended. Both changes take effect immediately for new filings and notices issued after enactment.
Average Household Impact
- refund/credit claim window for disaster-area filers — extends lookback period to match any IRS disaster postponement
- IRS collection notices during active disaster deadline extensions — bars payment demands on postponed-due balances
Congressional Summary
Disaster Related Extension of Deadlines ActThis act requires the Internal Revenue Service (IRS) to treat the postponement of the federal tax return deadline due to a federally declared disaster or certain other events as an extension of such deadline for purposes of calculating the limit on a tax refund. The act also provides that the IRS’s deadline for sending certain notices includes such postponement.Under current law, a tax refund claim must be filed within three years of the date that the federal tax return is filed. (Some exceptions apply.) The tax refund amount generally is limited to federal taxes paid within the three years preceding the tax refund claim plus any extension of the federal tax return deadline (known as the lookback period). Under the law in effect prior to this act, the postponement of the federal tax return deadline is not an extension for purposes of the lookback period. Thus, under prior law, certain tax payments (e.g., amounts withheld from a paycheck for federal taxes) made before the federal tax return is filed may be outside the lookback period and non-refundable.Under the act, a federal tax return deadline postponed due to a federally declared disaster or certain other events must be treated as an extension of such deadline for purposes of the lookback period.Further, under current law, the IRS is required to mail a notice and demand for tax payment within 60 days of an assessment but not before the tax payment due date. The act provides that the tax payment due date includes the postponement of the tax payment deadline due to a federally declared disaster or certain other events.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Public Law
- Action Date
- 2025-12-26
- Date Added
- 2026-06-24
- Source
- Congress.gov →
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